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NoreproductionordistributionwithoutthepriorwrittenonsentofMcGraw-HillEducation.
InternationalMarketing,18e(Cateora)
Chapter7TheInternationalLegalEnvironment:PlayingbytheRules
1)TheformoflawfoundintheUnitedStatesandEnglandisclassifiedascivilorcodelaw.
2)TheformoflawfoundinGermany,France,andJapaniscalledcivilorcodelaw.
3)Codelawisbasedonanall-inclusivesystemofwrittenrulesoflaw.
4)Stepsarebeingtakenincommon-lawcountriestocodifycommerciallaw,eventhoughtheprimarybasisofcommerciallawiscommonlaw.
5)Commonlawprescribesspecificpatternsofsocialandeconomicbehaviorforeveryone.
6)Codelawprohibitsthereceiptandpaymentofinterestonloans.
7)InMarxist–socialistsocieties,lawisstrictlysubordinatetoprevailingeconomicconditions.
8)TheWorldCourtcansettledisputesbetweenacompanyandagovernment.
9)Whendealingwithforeigncountries,amarketershouldrefertothelawsofthehomecountryforguidance.
10)Disputesrelatingtocommercialtransactionsmustbesettledincourtsandcannotbesettledinformally.
11)Statementsmadeduringconciliationmaynotbedisclosedinsubsequentlitigation.
12)Ifconciliationisnotusedtosettleadifferenceinaninternationalbusinessdisputeoranagreementcannotbereached,thenextstepislitigation.
13)Thesolerequirementofanarbitrationclauseisthatthepartiesagreetoabidebytheawardsresultingfromtheprocessofarbitration.
14)Oneofthedeterrentstolitigationwithrespecttodisputesintheinternationalbusinessarenaisthefearofcreatingapoorimageanddamagingpublicrelations.
15)Acertainlevelofpiracymaybebeneficialforsomecompaniesasitprovidesanunplannedproducttrial.
16)Legalownershipinonecountrydoesnotnecessarilymeanownershipinothercountries.
17)TheownershipofintellectualpropertyrightsinUnitedStatesisestablishedbyprioruseratherthanregistration.
18)Inmanycode-lawcountries,ownershipofintellectualpropertyrightsisestablishedbyregistrationratherthanbyprioruse.
19)TheGeneralAgreementonTariffsandTradeisthemostcomprehensivemultilateralagreementonintellectualpropertytodate.
20)IntheUnitedStates,apatentrevertstopublicdomainifitisnotmanufacturedandsoldwithinaspecifiedperiod.
21)ChargingwhatthemarketwillbearisasuggestedstrategyforIP-richfirmstomakemoneyinChina.
22)TheInternetisalibel-freezone.
23)TheshippingcompaniescollecttaxesforproductsthataresoldbyacompanythroughtheInternettocustomersoutsideitshomecountry.
24)TheInformedConsumerStandardisusedintheconsumerprotectioncourtsinCanadaanditplacestheonusofmakingtherightdecisionsonthebuyerwhoisexpectedtohavesubstantialknowledgeoftheindustryanditsproducts.
25)ThelawsregulatingdirectsellinginChinaareunusuallydetailedcomparedtoothersaroundtheworld.
26)Globalconcernfortheenvironmentincludesindustrialpollution,hazardouswastedisposal,andrampantdeforestation,butexcludesissuesthatfocusdirectlyonconsumerproducts.
27)AntitrustlawswerenotenforcedintheUnitedStatesduringmostofthetwentiethcentury.
28)Movingabusinessoutsidethepoliticalboundariesofthehomecountryexemptsthecompanyfromthehome-country'slaws.
29)OnepurposeofantitrustenforcementininternationalcommerceistokeepU.S.companiesfromimposingrestrictionsonexportsbyotherU.S.-basedcompetitors.
30)Widgets,Inc.isbeginningtoexportitsproductstoTaiwan,butitisn'tsureifitneedsalicensetodoso.TheresponsibilityofdeterminingifalicenseisrequiredrestswiththeTaiwanesecompanythatispurchasingtheproducts.
31)__________lawisderivedfromEnglishlawandispracticedintheU.S..
A)Code
B)Common
C)Religious
D)Civil
E)Universal
32)WhichformoflawisprimarilyfoundintheUnitedStates,England,Canada,andothercountriesonceunderEnglishinfluence?
A)codelaw
B)commonlaw
C)religiouslaw
D)civillaw
E)universallaw
33)Codelawisalsoknownas________law.
A)business
B)common
C)religious
D)civil
E)universal
34)Germany'slegalsystemcentersoncodelaw,whichisderivedfrom________law.
A)English
B)Economic
C)Greek
D)Persian
E)Roman
35)Thebasisfor________lawistradition,pastpractices,andlegalprecedentssetbythecourtsthroughinterpretationsofstatutes,legallegislation,andpastrulings.
A)civil
B)common
C)code
D)commercial
E)criminal
36)________lawseeks"interpretationthroughthepastdecisionsofhighercourtswhichinterpretthesamestatutesorapplyestablishedandcustomaryprinciplesoflawtoasimilarsetoffacts."
A)Constitutional
B)Family
C)Criminal
D)Civil
E)Common
37)Codelawisbasedupon
A)theinterpretationthroughthepastdecisionsofhighercourts.
B)theestablishedandcustomaryprinciplesoflawandtheirlegalprecedence.
C)anall-inclusivesystemofwrittenrulesoflaw.
D)theinterpretationoftheKoran.
E)thecodesofEnglishlawthatapplyinallcountriesunderEnglishinfluence.
38)Under_______law,thelegalsystemisgenerallydividedintothreeseparatecodes:commercial,civil,andcriminal.
A)constitutional
B)code
C)family
D)religious
E)traditional
39)Lawsgoverning________offerthemoststrikingdifferencesbetweencommon-lawandcode-lawsystems.
A)internationaltrade
B)socialwelfare
C)homicide
D)intellectualproperty
E)domesticindustry
40)Undercommonlaw,theownershipofintellectualpropertyisestablishedby
A)titledeeds.
B)use.
C)tradition.
D)patent.
E)registration.
41)Incode-lawcountries,theownershipofintellectualpropertyisdeterminedby
A)heredity.
B)natureofuse.
C)durationofusage.
D)registration.
E)indemnification.
42)________isconsideredcompleteasaresultofcatchallprovisionsfoundinmostofthistypeoflawsystems.
A)Commonlaw
B)Codelaw
C)Islamiclaw
D)Marxist–socialisttenets
E)TheEnglishlegaltradition
43)Apartfromintellectualpropertylaws,anillustrationofhowfundamentaldifferencesinthecommonandcodesystemscancausedifficultyisin
A)conductingciviltrials.
B)determininglawsgoverningexportandimport.
C)decidinghereditylaws.
D)determiningcriminallaws.
E)evaluatingtheperformanceofacontract.
44)Whatistrueofcode-lawsystems?
A)Theyrepresentalegalsystemthatisnotall-inclusive.
B)Theyestablishownershipofintellectualpropertybyprioruseratherthanregistration.
C)Theyoriginatefromtradition,pastpractices,andlegalprecedentssetbythecourtsthroughinterpretationsofstatutes,legallegislation,andpastrulings.
D)Theysometimesfailtoconsideragreementstobeenforceableunlessproperlynotarizedorregistered.
E)Theyfailtoconsiderunforeseeablehumanactssuchasriotsasactsofnature.
45)Thebasisfor________istheinterpretationoftheKoran.
A)commonlaw
B)codelaw
C)Islamiclaw
D)Marxist–socialisttenets
E)legaltradition
46)Islamiclawisalsoknownas
A)Ulema.
B)Umrah.
C)Zakat.
D)Shari'ah.
E)Barakah.
47)TheIslamiclawprohibitsthepaymentof
A)taxes.
B)profits.
C)interest.
D)equity.
E)leases.
48)Accordingto________,lawisstrictlysubordinatetoprevailingeconomicconditions,suchfundamentalpropositionsasprivateownership,contracts,dueprocess,andotherlegalmechanisms.
A)commonlaw
B)codelaw
C)Islamiclaw
D)Marxist–socialisttenets
E)legaltradition
49)Becauseofpoliticalchangesinthelatetwentiethcentury,whichcountryhashadtobuildfromscratchanentirecommerciallegalsystem?
A)France
B)Germany
C)Taiwan
D)Russia
E)SaudiArabia
50)Ifthereisadisputebetween________,theWorldCourtcanadjudicate.
A)governments
B)acompanyandagovernment
C)twocompanies
D)acitizenandagovernment
E)tradeassociationsoftwocountries
51)Whatmethodaccountsforthemajorityofresolutionsininternationalcommercialtransactiondisputes?
A)criminalsuits
B)conciliation
C)arbitration
D)litigation
E)coercion
52)________isanonbindingagreementbetweenpartiestoresolvedisputesbyaskingathirdpartytomediatedifferences.
A)Litigation
B)Prosecution
C)Arbitration
D)Conciliation
E)Coercion
53)Mariette'sU.S.-basedcompanyishavingadisputewithaChinesepartner.Whatmethodwouldbeespeciallyeffectiveinresolvingthisdispute?
A)arbitration
B)conciliation
C)coercion
D)litigation
E)acriminalsuit
54)Teel'sTacos,afoodcompanyintheUnitedStates,istryingtoresolveadisputewithalocalcompanyinBelizethathasbeenoperatingunderthesamenameinitscountry.AllattemptsmadebytheU.S.companytosettletheissueinafriendlymannerhavefailed,sotheownersoftheU.S.-basedTeel'sTacoshavedecidedtosettlethedisputewiththelocalcompanybyappointingamediator.Theyalsowantthesessionstobeprivatebecauseofthefearofcreatingapoorpublicimage.Whichofthefollowingdisputeresolutionmethodsisbestsuitedforthissituation?
A)conciliation
B)prosecution
C)arbitration
D)coercion
E)litigation
55)RalphRichards'scompanyhasbeenattemptingtosolveaproblemwithacontractdefaultbytheDutchgovernment.Hehastriedconciliationbutthetwopartiesdidnotfindanycommongroundonwhichtheycouldbeginafruitfulnegotiationforsettlement.Whatislikelytobethecourseofactionthatboththepartieswilltrynext?
A)mediation
B)informalsettlement
C)arbitration
D)litigation
E)coercion
56)Inatypical________procedure,partiesselectadisinterestedandinformedpartyorpartiestoserveasarefereetodeterminethemeritsofthecaseandmakeajudgmentthatbothpartiesagreetohonorunderthelaw.
A)arbitration
B)informalsettlement
C)conciliation
D)litigation
E)coercion
57)Whenformalarbitrationorganizationsreceiverequestsforarbitration,theyinitiallyattempttoresolvetheissuethrough
A)coercion.
B)prosecution.
C)directlegalintervention.
D)litigation.
E)conciliation.
58)Aconsumerproductsmanufacturingcompanyistryingtosolveadisputewithoneofitsrawmaterialsuppliersoverabreachofcontract.Afterthefailureoftheinitialattemptstosolvethedisputeinafriendlyinformalmanner,thecompanieshaveapproachedaninternationalcommissiontoappointaninformedpartytoactasarefereeandmakeajudgmentthatbothpartieswillhonor.Whatdisputeresolutionmethodisbeingusedbythesecompanies?
A)litigation
B)arbitration
C)mediation
D)coercion
E)judicialintervention
59)Whatgenerallyoccursduringarbitration?
A)Lawsuitsareinitiatedbetweentheconflictingparties.
B)Thepreliminarystepofconciliationisoftenbypassed.
C)Arbitralcentersdemonstratevaryingrulesandprocedures.
D)Theplaintiffandthedefendanteachselectapersontopresenttheircase.
E)Sessionsareprivateandconfidential.
60)Whatisusuallyplacedinthearbitrationclauseandisbecomingstandardinmanyinternationalcontracts?
A)thepreferredcourtorlegalbodyofarbitration
B)theplaceofarbitrationandthelanguageusedinthearbitrationprocess
C)thecontractstatingthattheresultsofthearbitrationprocessarenotbindingonbothparties
D)thejudgmentofthelegalactioninitiatedinthelitigationstage
E)thecopyofthelawsuitfiledbytheplaintiff
61)Arbitrationclausesrequireagreementwhereintheconcernedpartiesagree
A)onwhoisrightandwhoiswrong.
B)onthevalidityofthelitigationissues.
C)toabidebytheawardsresultingfromthearbitration.
D)tonothirealegalcounseltorepresentthem.
E)tonotnamethearbitrators.
62)Whenalltheothermethodshavefailed,whatisthefinalstepinaninternationalcommercialdispute?
A)conciliation
B)encouragingone'sgovernmenttoforcetheotherpartytocomply
C)restartingthearbitrationprocess
D)litigation
E)coercion
63)Ideally,whatshouldbethefirststepinthesettlementofadispute?
A)usingthestrategyofconciliation
B)engaginginarbitration
C)coercingtheotherparty
D)placatingtheinjuredparty
E)initiatingalitigation
64)Whatposesamajorchallengetointernationalmarketerswhiledealingwithcounterfeiting?
A)theeasewithwhichconsumerscantellthedifferencebetweenrealandcounterfeitproducts
B)thetheftofproductsbypiratesduringshipping
C)governmentregulationslegitimizingcounterfeiting
D)thecollusionbetweencontractmanufacturersandillegitimatesellers
E)thewidespreadavailabilityofduplicationsoftware
65)Whatisthemostattractivetargetforpiratesbecauseofhighdevelopmentcostandlowreproducibilitycosts?
A)apparel
B)software
C)autoparts
D)books
E)agriculturalproduce
66)Whatcommonlycounterfeitedproducthasthepotentialfordoingthegreatestharmtotheconsumingpublic?
A)toys
B)CDs
C)pharmaceuticals
D)software
E)clothing
67)InwhichcountryistheownershipofIPrightsestablishedbyprioruse?
A)Japan
B)Brazil
C)SaudiArabia
D)Jordan
E)UnitedStates
68)IntheUnitedStates,ownershipofintellectualpropertyrightsisestablishedby"prioruseversusregistration,"whichimpliesthattoclaimtheownershipofatrademark,anindividualmust
A)berecognizedbytheUnitedNationstrademarkprotectionagency.
B)payfortherighttoownatrademark.
C)establishfirstuseofatrademark.
D)provetheownershipofatrademarkinacourtoflaw.
E)registeratrademarkonlyinhishomecountry.
69)Whatinternationalconventionwasestablishedtorecognizeandprotectintellectualpropertyrights?
A)ParisConvention
B)MunichAgreement
C)TokyoConvention
D)EurasianConvention
E)KyotoProtocol
70)WhichofthefollowingconventionsisresponsibleforthepromotionoftheprotectionofintellectualpropertyrightsamongallthemembercountriesoftheUN?
A)TheBaselConvention
B)TheMadridArrangement
C)TheTokyoAgreement
D)TheEurasianConvention
E)TheWorldIntellectualPropertyOrganization
71)The________isamulticountryagreementthathasestablishedaregionalpatentsystemthatallowsanynationalitytofileasingleinternationalapplicationforaEuropeanpatent.
A)MadridArrangement
B)ParisConvention
C)TRIPsAgreement
D)BaselConvention
E)EuropeanPatentConvention
72)Whatisthemostcomprehensivemultilateralagreementonintellectualpropertytodateandcoversafullrangeofrightsthatareembodiedincurrentinternationalagreements?
A)WorldIntellectualPropertyOrganizationCharter
B)Trade-RelatedAspectsofIntellectualPropertyRightsAgreement
C)Inter-AmericanConventionAgreement
D)TheMadridArrangement
E)ParisAgreementfortheProtectionofIndustrialProperty
73)WhatisanapproachmentionedinthetexttopreventChineseconsumersfromcreativelycopyingforeignintellectualproperty?
A)boycottingalltradeactivitieswithChina
B)placingembargoesontradewithChina
C)chargingwhatthemarketwillbear
D)disengaginglocalrepresentationinsales
E)pursuingdisputeresolutionattheWorldCourt
74)TheInternethasnopoliticalornaturalboundaries;asaresult,
A)existinglawsaregenerallysufficienttocovercontractualissuesandpiracy.
B)existingcyberlawsincorporatetheuniquenessoftheInternetsuccessfully.
C)companiescannotrelyonindividual-countrylawsbutmustgotointernationalcourts.
D)theindividual-countrylaws,whichmayormaynotincludeprivateprotection,areusedintheabsenceofuniformandinternationallyacceptedcyberlaws.
E)theregulatoryenvironmentisstableandconsistentbetweencountries.
75)________buyandregisterdescriptivenouns,geographicnames,namesofethnicgroupsandpharmaceuticalsubstances,andothersimilardescriptorsandholdthemuntiltheycanbesoldataninflatedprice.
A)Patenttrolls
B)Serverfarms
C)Domainnameregistries
D)Cybersquatters
E)Universalresourcelocators
76)AccordingtoCanadianlaw,whatisthestandardexpectedbycourtsinCanadatodeterminewhetherarepresentationisfalseormisleading?
A)denovostandard
B)credulouspersonstandard
C)clearlyerroneousstandard
D)informedconsumerstandard
E)discretionarystandard
77)WhichactdevelopedbytheEuropeanUnionerasesmanylegalandtradedifferencesthathaveexistedfordecadesbetweenthemembernations?
A)EuropeanSanctityAct
B)EuropeanIndemnificationAct
C)EuropeanUnificationAct
D)SingleEuropeanMarketAct
E)ForeignCorruptPracticesAct
78)Whichcountryhasenactedthemoststringentgreenmarketinglawstoregulatethemanagementandrecyclingofpackagingwaste?
A)SouthKorea
B)China
C)Germany
D)UnitedStates
E)India
79)ThequestionofjurisdictionofU.S.lawoveractscommittedoutsidetheterritoriallimitsofthecountryhasbeensettledbythecourtsthroughapplicationofalong-establishedprincipleofinternationallawcalledthe:
A)rightofimminentdomain.
B)legaltransferofpower.
C)rightsofforeignpowersandcitizens.
D)objectivetheoryofjurisdiction.
E)McNeilprincipleofinternationallaw.
80)The_________oftheUnitedStatesmakesitillegalforcompaniestopaybribestoforeignofficials,candidates,orpoliticalparties.
A)Taft-HartleyAct
B)InformedConsumerStandard
C)ForeignCorruptPracticesAct
D)BestPracticesAct
E)InternationalCodesofLaw
81)Thefirstobjectiveof________lawsistoprotectAmericanconsumersbyensuringthattheybenefitfromproductsandideasproducedbyforeigncompetitorsaswellasbydomesticcompetitors.
A)incorporation
B)intellectualproperty
C)antitrust
D)indemnification
E)insurance
82)WhichofthefollowingU.S.governmentagenciesoverseesantitrustenforcementininternationalcommerce?
A)DepartmentofState
B)DepartmentofJustice
C)DepartmentofCommerce
D)DepartmentofDefense
E)DepartmentofHomeLandSecurity
83)Undertheantiboycottlaw,U.S.companiesareforbiddentoparticipateinanyunauthorizedforeignboycott.WhichsituationbroughtabouttheantiboycottlawintheU.S.?
A)theboycottofCubabytheU.S.
B)theboycottofSouthAfricabytheworldcommunity
C)theboycottofIsraelbytheArabLeague
D)theboycottofChinabytheUnitedStates
E)theboycottoftheU.S.bytheU.S.S.R.(thewheatembargo)
84)U.S.firms,theirforeignsubsidiaries,orforeignfirmsthatarelicenseesofU.S.technologycannotsellaproducttoacountryinwhichthesaleisconsideredbytheU.S.governmenttoaffectthe
A)competitivebalanceofworldtrade.
B)competitivebalanceoffreecompetitioninsidetheU.S.
C)relationshipoftheU.S.withtheworldcommunity.
D)overallbalanceofpaymentsoftheUnitedStates.
E)nationalsecurityoftheUnitedStates.
85)TherevisedsetofexportregulationspublishedbytheDepartmentofCommercetospeeduptheprocessofgrantingexportlicensesisthe
A)AgreementonInternationalTradeandNegotiations.
B)Export-ImportManual.
C)InternationalTradeRegulations.
D)ExportCharter.
E)ExportAdministrationRegulations.
86)WhatlicenseisrequiredforproductsexportedfromtheUnitedStates?
A)internationalorbilaterallicense
B)generaloravalidatedlicense
C)singlelicense
D)exporterorthird-partylicense
E)shipmentlicenseoragentlicense
87)Theresponsibilityofdeterminingifalicenseisrequiredrestswiththe
A)DepartmentofCommerceoftheexportingnation.
B)regulatorybodyoftheindustry.
C)exporter.
D)U.S.Customs
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